Deloitte Australian Mortgage Report 2015
Let the good times roll
As we head through 2015 with strong tailwinds, record low interest rates, robust property prices, and strong returns in key Sydney and Melbourne markets, competition among lenders for borrowers is the most intense it has been for years.
However, the current low interest rates are due to a genuine concern about the economic outlook for Australia as unemployment is increasing due to the shifts in business focus and property price growth, exceeding wage growth in many markets. Although lenders are experiencing negligible levels of mortgage losses, affordability and debt servicing levels remain high in Australia relative to overseas benchmarks, and First Home Buyers are continuing to find the mortgage market challenging.
So while we may celebrate the strength in the market, we need to be aware it is still a market with challenges, as well as opportunities.
Deloitte Mortgage Report Roundtable
This 10th anniversary edition of the Deloitte Australian Mortgage Report leverages the insights from a facilitated roundtable of heads of lending and mortgages from Australia’s big four banks, credit unions, regional lenders and brokers.
With participants from the Commonwealth Bank of Australia and ANZ, Macquarie Bank and ME Bank, the Pepper Group and Resimac and the largest broker group in the country, Australian Financial Group, the facilitated discussion covered market growth, customer expectations, digital disruption in mortgages, opportunities for regionals, and the challenges for brokers and the majors.
Points of view
We also carry points of view from a Deloitte team of partners including Deloitte Access Economics as to the outlook for Australia’s strong housing market, Deloitte Treasury & Capital Markets on the expectations and regulatory requirements for product and consumer best interest from ASIC, Deloitte Financial Services Advisory partners on the Funding market; and Deloitte Consulting Financial Services partners on Fintechs and where they fit and the 21st Century mortgage customer.
Explore the infographic
Financial Services Partner James Hickey and Deloitte Access Economics’ Michael Thomas talk briefly to Ross Greenwood about the Australian Mortgage Market – the opportunities and challenges.